hi
i need help to understand the average mortgage balance calculation. the 1mil/750000 cap is easy to understand but not how to calculate the average (or im not understanding).
We moved twice last year, selling first our property in VA in april and then our FL house in November and moving inbetween to our current home. mortgage balanced was as follows :
| | jan | feb | mar | april | may | jun | jul | aug | sep | oct | nov | dec |
house 1.
sold april15th | 329000 | 328000 | 327000 | 326000 | | | | | | | | |
house 2.
sold nov 15th | 303000 | 302500 | 302000 | 301500 | 301000 | 300500 | 300000 | 299500 | 299000 | 298500 | 298000 | |
house 3.
bought sep 1st | | | | | | | | | 510000 | 509124 | 508247 | 507367 |
when entering my 1098s with TT it tells me to take standard deduction despite my interest > 18000$ and capped at the 10000$ state taxes.... what it looks like its doing it adding up the loan balance to > 1.13mil and reducing effect of the interest to ~ 65% making standard deduction better but is this really right?.
pub 936 got me more confused honestly...
if i do the math by hand i get an average of 554 but am i doing it right? below how i sum up the monthly balances and average it out :
| | jan | feb | mar | april | may | jun | jul | aug | sep | oct | nov | dec | | |
| house 1. sold april15th | 329000 | 328000 | 327000 | 326000 | | | | | | | | | | |
house 2.
sold nov 15th | 303000 | 302500 | 302000 | 301500 | 301000 | 300500 | 300000 | 299500 | 299000 | 298500 | 298000 | | | |
house 3.
bought sep 1st | | | | | | | | | 510000 | 509124 | 508247 | 507367 | | |
| | | | | | | | | | | | | | | |
| balance | jan | feb | mar | april | may | jun | jul | aug | sep | oct | nov | dec | | avg |
| balance sum | 632000 | 630500 | 629000 | 627500 | 301000 | 300500 | 300000 | 299500 | 809000 | 807624 | 806247 | 507367 | | 554186.5 |
so i get average of 554186.5 and think i should be able to deduct the full mortgage interest.
am i wrong, or is TT doing the math wrong for me?
